Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help with part B ! Show in excel! a . Calculate the payback period in a table. The first three columns of the table

Please help with part B! Show in excel! a. Calculate the payback period in a table. The first three columns of the table will be the year, the cash flow for that year, and the
cumulative cash flow. The fourth column will show the whole year for the payback. In other words, if the payback period is three-plus
years, this column will have a 3, otherwise it will be a zero. The next column will calculate the fractional part of the payback period, or
else it will display zero. The last column will add the previous two columns and display the final payback period calculation. You also
should have a cell that displays the final payback period by itself and a cell that returns the correct accept or reject decision based on
the payback criteria.
b. Write a nested IF statement that calculates the payback period using only the project cash flow column. The IF statement should return
a value of "Never" if the project has no payback period. In contrast to the example we showed previously, the nested IF function should
test for the payback period starting with shorter payback periods and working toward longer payback periods. Another cell should
display the correct accept or reject decision based on the payback criteria.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understanding The Finance Of Welfare

Authors: Howard Glennerster

2nd Edition

1847421091, 978-1847421098

More Books

Students also viewed these Finance questions